the head of the american petroleum institute today reported on the state of the oil and natural gas industry. he also talked about the policies that energy producers hope to see from the trump administration and new congress. >> [inaudible] in the audience here and thank you for being with us today. again, welcome to the state american energy presentation. the congress swore in the new administration set to take -- to start in a few weeks. we like to take this opportunity to share all levels of government from every region of the country and all along the political spectrum the fundamental nature of our society. this year's report details the many ways in which energy is fundamental to our society's

standard of living. a healthy economy and strengthen national security. we also like to remind policymakers and the public of the mission to promote safety globally and to seek public policy that allows our industry to continue adding value to people's lives. we are part of the solution to spur the economy, improve the environment and strengthen national security. with that, i am pleased to introduce american petroleum institute president ceo jack gerard. [applause] >> thank you for the introduction and welcome again to our distinguished guests and all who've joined us today for our afternoon events as we show

the state of energy approach as mentioned it is our hope and expectation to lay out the views of the industry as we look to 2017 as we move forward. also at you your seats replacede 2017 state of american energy report. and the title of this year's report really captures or says it all. energy is everything. energy is fundamental to our society from the electricity, that whites are homes in the powers of finances to the fuels that keep our vehicles running to the chemicals that make modern medicine possible the report demonstrates the countless ways that energy is essential to modern society with oil and natural gas serving the foundation. energy is so thoroughly woven into our daily lives that few will ever question whether it

will be there or in fact where it comes from. by detailing the energy's contribution to almost every moment of every day, the report gets back to the basics and keeps the focus where it should be, on the american energy consumer. pundits are still analyzing the 2016 election, but one thing is certain. voters want and expect change. and above all what they want results and a renewed focus on finding positive solutions that improve their daily lives. exit polls found that almost 70% of voters are dissatisfied with the way the government is working and revealed an electorate that feels policymakers are out of touch with their daily problems and priorities. with the exception of those distinguished policymakers that we have today and i want to personally thank them for being

with us today. voters expectation i is the elected leaders will work together to advance common sense policy that is focused on their needs and their daily realities rather than to continue partisanship and government gridlock. in the new year and at the start of the new congress, we have an opportunity to change the national conversation when it comes to energy policy. we have a once in a generational opportunity to find a solution for most of today's most pressing issues including creating middle-class jobs, tackling income inequality, ensuring sustainable energy future for consumers and enhancing our national security. ..

>> >> in addition tripoli reports that american drivers save as much as $550 just to their transportation costs per year america is

energy abundance helps to cut materials and energy cost for the american manufacturers many of whom are represented here today including steel, chemicals, plastics steel, chemicals, plastics, fertilizers and numerous consumer products. industrial costs are between 30 and 50% lower than those of our competitors. and american manufacturing cost are now between 10 and 20% lower than those in in europe and couldn't be too were three per cent lower in china by 2018 with an american advantage. these lower energy costs helped to track the return of manufacturing in the united states.

for example, analysis done that chemical production grew 3.6% in 2015 but is projected to continue to increase through 2020. with the new announced projects coming on line. as they continue to grow demand for affordable and abundant energy will also grow. three and also to lift more and more out of poverty. and then they lack access to clean affordable reliable energy. the agency estimates more than 1.2 billion people are around the world currently lack access to electricity. further, 2.6 billion need to

other things like chronic health issues. and with cleaner during fuel to heat their homes. a growing world population of a growing demand is why the overwhelming consistent view of energy experts said economist and government agencies estimates that fossil fuels from the world's energy needs into the future. according to projections will and gas will produce more than 60 percent of the needs by 2040 for renewable

energy growth. all of which we support. increasing 40% largely due to expanding opportunities and development nations and three-quarters of 70% will be met by fossil fuels. beyond consumption and all of the strategy's and a steady noted in 2015 that using 15 percent less energy than with fewer co2 remissions than the same economic activity tenures earlier in 2005. our global community will need more energy and will

continue to be the dominant source for decades to come. the only question up for debate is which nations will help meet the global energy needs. it has made it clear that the united states is and can be a leader to meet those needs. but to achieve that goal we need smart pro-growth energy policies to recognize that central role of meeting energy demand. to show the world how the entrepreneurial spirit of production technique sought to reaffirm everyday by

millions of menander women who work in the gas industry and smart and effective regulation transforms the united states from a passive consumer on the world energy stage to a leader in only a decade's time. , believe conclusory the long-held assumption of increased energy production refining and consumption to lead to a dirty your environment. they don't. and that we no longer have to choose between energy and a cleaner environment. even as he emissions continue. according to the e i a

carbon was at the lowest point in 25 years even as electricity demand continues to rise due largely to greater use of american cleaner-burning natural gas now the nation's largest fuel source for electricity thanks to the world class refiners and in combination with fuel efficient vehicles, u.s. air pollutants have fallen by 70 percent since 1970. even with the vehicle miles traveled have increased more than 180%. further thanks in part to the increased use of natural gas those concentrations have dropped since

17 percent since 2000 that doesn't just make us a superpower bottles so a goalie emission reduction leader. it chief primarily through the private sector the oil and natural-gas industry it vances into decades old techniques of hydraulic fracturing to drive america energy revolution the billions of dollars from the refiners for nuclear technologies to develop cleaner-burning fuels but of course, we don't operate in a vacuum. the government the federal, state, and local levels set those regulatory parameters in which they operate for

all innovation and investment for any other industry policy clearly matters. these remarkable achievements are even more remarkable in light duh of the many constraints by designed to stifle domestic fossil fuel development than to benefit american consumers. to lead the world not just an oil and natural gas production but also emissions reduction in to maintain the united states best in the world refineries , we must break from the recent past and must examine the regulatory onslaught of the last few years that has proposed reimposed 145 new regulations of the oil and gas industry and other actions with the work and to

implement smart regularly -- energy regulations focused on the consumer to grow the economy, protect workers and continue to improve the environment. it is our view the regulations have the most basic and common sense goals should be reexamined, revives to or removed to make way for foreword smarter energy policies. case in .94 percent of acreage is offish -- off-limits to production allowing more production could create one over 800,000 new jobs grow the economy by $70 billion per year and raise more than $200 billion of revenue for

the treasury restricted offshore areas kendall told more than 50 billion barrels of oil with 125 cubic feet of natural gas. and add to what it could do to further benefit consumers and the economy and environment if more of that energy was available for responsible and save domestic production. , and more people in developing countries could have access to cleaner-burning north american natural gas, for those provided and produced by american refineries or what this could mean for the global environment looking at the incoming trumpet ministrations we hope they will take notice of the american energy sector

record of success come into safety and shoes collaboration with the market-based approach as the guiding policy principles. we need more energy but we haven't seen any meaningful expansion in decades with no need to expand energy infrastructure to keep pace with the reality to deliver affordable energy to families and businesses the government decisions and red tape in the good jobs that they create. even for projects successfully completed with the exhaustive approval process. a data 10 him support increased infrastructure to

target these projects collect what they are doing in reality is putting themselves and property at risk. longer-term by attempting to constrain private investment will not taxpayer funded investment. with millions of their fellow americans despite ample supplies near by the northeastern united states is known to seven of the top-10 for electricity costs.

the failure to expand natural-gas in the region could cost households and businesses in estimated nine put $4 billion in higher energy cost of more than 167,000 private-sector construction jobs just between 2016 and 2020. investments in energy infrastructure with economic growth number affordable energy for americans that could generate 1.5 trillion of capital investment which for context almost three

times the size of the transportation bill signed into law in the end of 2015 so think of the opportunities to combine the public infrastructure with private sector investment three times larger to put those two together for the benefit of american society. it is estimated to support 1.1 million new jobs and $120 billion per year to the nation's economy by 2025. that is up progress the people made clear they want to see in the months and years ahead from their elected leaders in municipal governments and federal agencies.

and one that is a top party for many is tax reform. into reform the nation's tax code we hope any changes would make america to be mindful of the important role of oil and natural gas plays of economic growth in to support 9.8 accounting four 8% of gdp to contributes on average about $70 million per day to his federal government in revenue for taxes even during the down market we interest and the need for tax reform will

fundamentally tax policy just like broader energy policy should promote the safe and responsible production refining and transportation of energy including imports and exports but this will help insure reliable and affordable supplies of energy for consumers. fortunately a strong majority of american voters agree and based on the results of election nights we found at 80 percent of voters pohai support increase production and refining 94 percent of republicans and 76 percent of independents. it also found 81 percent of voters showed increased development of energy infrastructure to bring

those cleaner-burning fuels to even more americans and energy consumers around the world that also found that they reject the false choice offered by some between growing the economy and a cleaner environment specifically supporting natural gas to reduce greenhouse gas emissions. few other issues enjoy a energies level of bipartisan support and energy remains one of the of bridge the divide between democrats and republicans.

that drive economic growth and continue their current trajectory while increasing america's competitiveness that provide allies with a reliable partner that uses considerable energy resources as a way a to lift people up all around the world is up the incoming administrator in congress like many pro energy states embrace the potential as a global energy leader to work with the industry to ensure that consumer demand is met and america's 21st century renaissance will deliver the economic and opportunities and benefits for many years

to come. we occupy an important point in our nation's history for the first time in our lifetime we can say that north america has the potential to have the net energy exporter that is a revolutionary changes significant shift from where we were a few short years ago as a the question we face in the future not if they have the natural resources for the talent to reduce and what we need to prosper because it has demonstrated we clearly do in the months and years ahead by a bipartisan vision of american energy that

generates the kinds of jobs with the of hallmark of the industry since the very beginning ultimately the very foundational nature of oil and gas fuel and feedstock for everyday products makes the national policy discussion more than just an abstract position in may said it is gish -- a discussion of what is best for american workers families and the environment truly energy is everything as we look to the future the industry since stands ready to offer solutions to help the needs of variation from to work with elected officials of levels of

government to ensure that the american consumer benefits hist above all we will remain responsible stewards of the resources we develop for which we operate thank you for your time today and participating with the. [applause] >>. >> being a political audience what was it api like to see from the trump white house in the first 100 days?

>> how much time do you have? >> using collaboration in the senate and the house to be consistent with the planes that we make today capture would is different for the american people they made clear they want change or to do things differently. but with the first 100 days hoping they can come together and as a top priority in the agenda of why dealing with 145 proposed or pending regulations we support common sense regulation but

we hope the regulatory activity would be a top priority and to put people to work building pipelines a couple of quick decisions that could be made to put thousands of people to work in the heartland of america that is another priority the renewable fuel standard is the priority i expect that will happen the first 100 days but that needs to be repealed or reformed but then to look generally across all energy access issues how do we make that more effective to benefit the american consumer?

we know we can do that while improving the environment. >> let's pick upon your infrastructure comment the question is what could be done to ensure the new projects are permitted in a timely and noncontroversial -- controversial manner? [laughter] >> will say this because it goes well beyond oil and gas as highway and road construction the first thing we need to do is honor the rule of law would make go through the process to see approval the require us to change the route is to accommodate local interests that are very deserving that we should think about and accommodate, we need to make

sure a final decision is made to honor that decision. there is nothing more chilling to private sector investment and the unknown. or not knowing what the outcome could be so without being too specific there's a couple they're going need to reset and reorient to make sure reenters stand that permitting process for any construction activity everybody has the chance to contribute once a final decision is made we need to honor the decision come number y n or never two or number three for the short-term future. >> making a strong argument do you think there is a real

opportunity to change fossil fuel? >> generally not all the oil and gas but advocates of all of the above with energy efficiency it is the question of education we found with the polling data but they are compelling when you find 80 percent of the public clear majority of democrats cv energy issues such as energy and oil production in the united states to say we need more of that there is a clear strong consensus on moving forward and some don't agree with that. likely be will not change all putting that would be

positive for most elected officials we should you with the same the public support this activity and infrastructure and american jobs. some will always have a different view that they support their right to express that view but when the processes dealt with we need to move on because it benefits the country and the environment. >> going to climate change what about that under a trumpet ministrations? i think it will continue what it has been rigid is reaching out to demonstrate solutions to the challenge i try to emphasize over the

past six months from electricity production standpoint today we year at a 25 year low of carbon reduction my wishes the president would have gone to paris to talk about the united states that was accomplished primarily through private sector investment and innovation technological and fire -- advancements of refocused on the solution that oiling gas base are major contributors to lower those emissions. . .

second seat to no one in terms of dealing with the challenges of our day and as we look forward we need to take advantage of what has been proven and demonstrated and really begin to move that experience around the world. how we work to influence the senate democrats up for reelection for the states that mr. trump has one? >> the conversation and

education our belief is that energy, specifically oil and natural gas should transcend partisan politics. we all have different where we should be on the spectrum but the reality as i look at some of our friends they are big advocates. so our hope is that we have less conversation about partisan divide, less conversation about who's the democrat, who's the republican, who is to deny air and the believer and more about how we come togethe they come te benefit of all americans the same people that vote and to say we need change. we want it done differently and want to see something produced out of the process that reflects on the reality of our lives as individuals. our hope is working with those individuals we worry less about what political affiliation people having more about making

sure we focus on science, data into the american consumer. >> .com includes the questions that we have here today. >> we appreciate your time. please take a look at our report and if you have any questions we are happy to answer them ;-) for participating. [applause] [inaudible conversations]